Home-Price Declines Accelerate

Drop of 1.7% Shows
Mortgage Market
Still Is Unsteady

By

Sudeep Reddy

Updated May 23, 2008 12:01 a.m. ET

Home prices are falling faster as the economy slows and turmoil in the mortgage markets continues.

Prices fell an average of 1.7% nationwide in the first quarter from the final three months of 2007, according to the Office of Federal Housing Enterprise Oversight. The decline was the largest in the index's 17-year history. The government index, which is seasonally adjusted and based on data for home purchases, had dropped 1.4% in the...